Maintenance Agreement Worth It?
by Dave Ramsey
Dear Dave,
I’m interested in your opinion regarding buying a five-year maintenance agreement on a new treadmill. It covers repairs, and an annual visit to check and lubricate all moving parts. Is a maintenance agreement ever worth the money, especially if you’re not the handyman type?
Anonymous
Dear Anonymous,
You know why they sell those agreements? Because they’re huge moneymakers!
No, I wouldn’t do that. We have exercise equipment in our home, and we don’t have any maintenance agreements. Lots of folks make resolutions to start working out and get into shape, but very few see it through to the end. A high percentage of expensive workout equipment turns into very expensive coat hangers in a short amount of time.
I don’t ever recommend maintenance agreements, or extended warranties. I self-insure by having money saved up, and buying quality items!
– Dave
Posted by Michelle
from Blue Springs, MO
on motor items, like a treadmill...i recommend it. We bought a great quality one at Sears along with the EW and over the years have replaced it TWICE. Keep in mind, that we use it almost everyday so it gets used. Electronics are a different story and don't recommend it...they should last.
|
Posted by Sharon
from Salem, Oregon
My husband has sold household appliances, televisions and stereos for almost thirty years. I asked him why they don't make appliances last like they used to and his answer was that the manufacturers caught on years ago that they can make great products which last through the decades or they can get keep their customers returning by making items that wear out faster, or are so high tech that the average person can not repair them. I buy a extended warranties on everything, even cordless phones. They have come in handy for my PC, which died two days before the deadline, my NordicTrack bicycle, microwave, range, the dishwasher, washing machine and dryer (twice!), Bose radio remote control, CD players, iPods, VCR's, DVD players, etc.
It is true you are only paying for a piece of paper but if something goes wrong that piece of paper is worth it's weight in gold. Twenty-four dollars upfront can save hundreds of dollars later on.
One piece of advice: keep your warranties filed with your important papers and do not throw them away until you get rid of the items.
|
